Legal basis: Article 259 of the Civil Law of People's Republic of China (PRC) stipulates that institutions and their staff who perform the duties of managing and supervising state-owned property shall strengthen the management and supervision of state-owned property according to law, promote the preservation and appreciation of state-owned property, and prevent the loss of state-owned property; Those who abuse their powers or neglect their duties and cause losses to state-owned property shall bear legal responsibilities according to law.
Whoever, in violation of the laws and regulations on the management of state-owned property, transfers at a low price, conspires to divide it up, guarantees without authorization or causes losses to state-owned property in the process of enterprise restructuring, merger and division, and related party transactions, shall bear legal responsibilities according to law.